Internal Investigations and Corporate Compliance

Corporate Compliance

A corporation whose employees violate applicable laws can become the target of investigation and even prosecution. Organizations found to have violated applicable laws can face potentially staggering fines and penalties, as well as the prospect of “corporate probation” (which involves intrusive federal monitoring).  Individual corporate employees, officers and directors can also face criminal prosecution.

The Federal Sentencing Guidelines for Organizations, enacted in 1991, give organizations the incentive to police themselves by developing an effective Corporate Compliance program. Under the Guidelines, an organization that has such a program may receive a substantially reduced fine, and may be able to avoid corporate probation and criminal prosecution altogether.

Unfortunately, not every effort to build a corporate compliance program will be deemed effective by the government. The Guidelines contain complex criteria which should be satisfied if a compliance program is to be effective.

Tama Beth Kudman can help your organization address a broad range of management issues by providing investigative and consulting services as they relate to todays complex regulatory environment. 

Internal Investigations

Internal investigations are a vital part of a company’s operation and management. It’s a serious matter when an employee is alleged to be violating company rules, or even committing violations of law. So-called ‘insider threats’ can cause as much damage as thieves outside. Effective internal investigations are designed to uncover the truth about misconduct or fraud within a company, without damaging innocent employees Effective internal investigations can also protect a corporation/company from criminal and civil exposure.

Internal investigations are a vital part of a company’s security program. It’s a serious matter when an employee is alleged to be violating company rules. So-called ‘insider threats’ can cause as much damage as thieves outside. These threats come in many different forms, including:

  • Accounting fraud
  • Theft of physical assets
  • Unauthorized access/sale of data
  • Threats, sexual harrassment or other inappropriate forms of behavior or communication
  • and more.

Internal investigations aim to uncover the truth about alleged misconduct within the organization. But a good internal investigation must do so without compromising the relationship with innocent employees or unnecessarily damaging reputations. Effective internal investigations can only be performed with proper planning, consistent execution, analytical skill, sensitivity, and a solid grasp of the legalities involved.

An effective internal investigation includes: collection and examination of written or recorded evidence, employee and witness interviews, and computer and network forensics. It may also require consultation with law enforcement.

The Importance of An Experienced Attorney

Given the complexity of the regulations surrounding every industry, you should retain a lawyer who has extensive experience in internal investigations and corporate compliance matters.

Tama Beth Kudman has been representing individuals and corporations for nearly 20 years, throughout the country. Ms. Kudman brings this experience and knowledge to every compliance matter and internal investigation.

Contact us today for help with internal investigations or in formulating a compliance plan for your company.

Contact Tama Beth Kudman, an experienced, knowledgeable and aggressive federal criminal defense attorney with offices in West Palm Beach and Palm Beach Gardens, Florida and New York City, New York.